Family Owned businesses are widely seen as the backbone of the economy around the world, they create wealth, they provide jobs, they are locally rooted and connected to their communities and they seem to be around for long periods of time. Their sustainability is critical to global economic growth. Sustainability of family owned businesses in Kenya is threatened especially after the exit of the founder in Kenya whether through retirement, ill health or death.

This paper is a literature review of family owned businesses and their role in the economy of a Country. It has examined related literature to family owned businesses sustainability and growth after the exit of the founder and also provides for the conceptual framework towards sustainability. The paper has looked at family owned businesses, the role of Strategic Succession Planning in family owned businesses and its importance especially after the exit of the founder, corporate governance that includes leadership and management structures that is in place in family-owned businesses in order to ensure sustainability and success, motivation factors that would influence the next generation for ownership to be attracted to taking up the family businesses, challenges that deter the sustainability and success in family owned businesses.

The literature review has informed a conceptual framework in which family business can be built to create sustainability. The key issues identified for sustainability succession planning, leadership, governance and management of business and motivation of family members to take up family businesses upon exit of the founder.

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